Cellcyte Genetics (SHPN) 10-Q 14 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 13, 2013
Document And Entity Information	'	'
Entity Registrant Name	'Cellcyte Genetics Corp	'
Entity Central Index Key	'0001325279	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Is Entity a Well-known Seasoned Issuer?	'No	'
Is Entity a Voluntary Filer?	'No	'
Is Entity's Reporting Status Current?	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	82,329,481
Document Fiscal Period Focus	'Q3	'
Document Fiscal Year Focus	'2013	'

Interim_Consolidated_Balance_S

Interim Consolidated Balance Sheets (Unaudited) (USD $)	Sep. 30, 2013	Sep. 30, 2012
CURRENT ASSETS	'	'
Prepaid expenses and deposits	$17,073	$9,403
Total Current Assets	17,073	9,403
OTHER ASSETS	'	'
Furniture and equipment, net of depreciation	'	'
Intellectual property, net of amortization	10,590	16,218
Total Other Assets	10,590	16,218
TOTAL ASSETS	27,663	25,621
CURRENT LIABILITIES	'	'
Accounts payable	110,997	73,009
Accrued expenses	153,398	118,850
Due to related parties	140,654	140,704
Note payable - current portion	10,725	2,405
Total Current Liabilities	415,774	334,968
LONG TERM LIABILITIES	'	'
Convertible notes - related party	385,741	346,415
Total Long Term Liabilities	385,741	346,415
TOTAL LIABILITIES	801,515	681,383
COMMITMENTS AND CONTINGENCIES	'	'
STOCKHOLDERS' DEFICIT	-773,852	-655,762
Common stock, $0.001 par value; 525,000,000 shares authorized, 82,329,481 shares issued and outstanding, respectively	$82,329	$82,329
Additional paid in capital	11,734,022	11,734,022
Common stock purchase warrants	49,154	49,154
Deficit accumulated during development stage	-12,639,357	-12,521,267
Total Stockholders' Deficit	-773,852	-655,762
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$27,663	$25,621

Interim_Consolidated_Balance_S1

Interim Consolidated Balance Sheets (Parenthetical)	Sep. 30, 2013	Sep. 30, 2012
Statement of Financial Position [Abstract]	'	'
Common stock, $0.001 par value, authorized	525,000,000	525,000,000
Commonstock, $0.001 par value, shares issued and outstanding	82,329,481	82,329,481

Interim_Consolidated_Statement

Interim Consolidated Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended		105 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
Income Statement [Abstract]	'	'	'	'	'
REVENUES	'	'	'	'	'
OPERATING EXPENSES:	'	'	'	'	'
Consulting	'	'	'	'	1,678,107
General and administrative	14,066	16,492	40,491	50,299	2,641,901
Professional fees	11,349	9,435	49,644	49,458	1,930,984
Research, development and laboratory	'	'	'	'	1,296,619
Salaries and benefits	'	'	'	'	1,457,524
Stock-based compensation	'	'	'	'	3,025,776
Total Operating Expenses	25,415	25,927	90,135	99,757	12,030,911
LOSS FROM OPERATIONS	-25,415	-25,927	-90,135	-99,757	-12,030,911
OTHER INCOME (EXPENSE)	'	'	'	'	'
Interest income	'	'	'	'	32,513
Interest and finance charges	-8,592	-9,014	-27,954	-23,389	-358,194
Impairment of intellectual property	'	'	'	'	-568,913
Impairment of tenant improvements	'	'	'	'	-383,535
Gain on extinguishment of debt	'	'	'	180,955	803,086
Gain (loss) on disposal of furniture and equipment	'	'	'	1,985	-133,403
Total Other Income (Expense)	-8,592	-9,014	-27,954	159,551	-608,446
INCOME (LOSS) BEFORE TAXES	-34,007	-34,941	-118,089	59,794	-12,639,357
INCOME TAXES	'	'	'	'	'
NET INCOME (LOSS)	($34,007)	($34,941)	($118,089)	$59,794	($12,639,357)
NET INCOME (LOSS) PER COMMON SHARE:	'	'	'	'	'
Basic	$0	$0	$0	$0	'
Diluted	$0	$0	$0	$0	'
WEIGHTED AVERAGE COMMON SHARES:	'	'	'	'	'
Basic	82,329,481	82,329,481	82,329,481	82,329,481	'
Diluted	82,329,481	82,329,481	82,329,481	88,964,581	'

Interim_Consolidated_Statement1

Interim Consolidated Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended		105 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES:	'	'	'
Net income (loss)	($118,089)	$59,794	($12,639,357)
Adjustments to reconcile net loss to net cash used by operating activities	5,628	5,628	136,025
Depreciation of furniture and equipment	'	5,928	554,256
Stock-based compensation	'	'	3,025,776
Non-cash services	'	'	1,005,082
Amortization of discount on note	450	450	2,250
Warrant issued for legal services	'	'	46,154
Accounts payable paid with common stock	'	'	144,103
Non-cash beneficial conversion right	'	'	36,400
Non-cash impairment of intellectual property	'	'	568,913
Non-cash impairment of tenant improvements	'	'	383,535
Expenses paid by stockholder	'	'	32,755
Accrued interest reduced in settlement	'	1,385	1,385
Accounts payable written off	'	'	-569,812
Accounts payable reduced in lease settlement	'	'	520,788
Gain on extinguishment of debt	'	-180,955	-234,502
Loss on disposal of furniture and equipment	'	-1,985	133,403
Prepaid expenses and deposits	-7,670	15,279	-17,073
Increase (decrease) in liabilities	'	'	'
Accounts payable	37,988	31,965	591,380
Accrued interest	'	'	82,088
Accrued expenses	34,548	17,994	153,398
Net cash used by operating activities	-47,145	-44,517	-6,043,053
CASH FLOWS FROM INVESTING ACTIVITIES:	'	'	'
Intellectual property acquisition	'	'	-715,528
Cash from sales of equipment	'	1,985	109,450
Furniture and equipment acquisiton, net	'	'	-1,327,070
Cash acquired on reverse acquistion	'	'	1,429
Net cash provided (used) by investing activities	'	1,985	-1,931,719
CASH FLOWS FROM FINANCING ACTIVITIES:	'	'	'
Proceeds from issuance of convertible notes	38,825	131,800	1,337,244
Proceeds from convertible note allocated to warrant	'	'	3,000
Proceeds from note to fund insurance premiums	32,160	0	32,160
Advances from related party	'	'	112,625
Payments on note payable	-23,840	-89,268	-166,146
Proceeds from sale of common stock	'	'	6,655,889
Net cash provided by financing activities	47,145	42,532	7,974,772
Net increase in cash and cash equivalents	'	'	'
Cash and cash equivalents, beginning of period	'	'	'
Cash and cash equivalents, end of period	'	'	'
SUPPLEMENTAL CASH FLOW DISCLOSURES:	'	'	'
Income taxes paid	'	'	'
Interest paid	'	'	50,142
NON CASH INVESTING AND FINANCING ACTIVITES	'	'	'
Note payable to related party converted to common stock	'	'	36,400
Issuance of note for insurance	'	21,332	69,000
Issuance of note in exchange for accounts payable	'	'	$275,000

Note_1_Description_of_Business

Note 1 Description of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Description of Business and Basis of Presentation	'
	NOTE 1 – DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
	CellCyte Genetics Corporation (the “Company”) is in the development stage, as defined by Financial Accounting Standards Board (“FASB”) ASC 915, “Development Stage Entities” and its efforts have been principally devoted to the commercialization of its cell expansion technology since it previously discontinued the discovery and development of stem cell therapeutic products in 2008. To date, the Company has not generated any sales revenues, has incurred ongoing operating expenses and has sustained losses.  Consequently, its operations are subject to all the risks inherent in the establishment of a new business enterprise.
	As shown in the accompanying financial statements, the Company has incurred significant losses since inception and has not generated any revenues to date. The future of the Company is dependent upon its ability to obtain sufficient financing, demonstration that its bioreactor device can satisfy the cell expansion requirements of research organizations which it has, or will have, collaboration agreements with, the continued willingness of CCYG stock option holders to exercise their vested options and, ultimately, upon achieving future profitable operations. These factors, among others, raise substantial doubt about the Company's ability to continue as a going concern. The accompanying interim consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.
	The Company follows the accounting guidance outlined in the Financial Accounting Standards Board Codification guidelines. The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted principles for interim financial information and with the instruction to Form 10-Q of Regulation S-K. They may not include all information and footnotes required by United States generally accepted accounting principles for complete financial statements. However, except as disclosed herein, there have been no material changes in the information disclosed in the notes to the financial statements for the year ended December 31, 2012 included in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 12, 2013. The interim unaudited financial statements should be read in conjunction with those financial statements included in the Form 10-K. In the opinion of Management, all adjustments considered necessary for a fair presentation, which unless otherwise disclosed herein, consisting primarily of normal recurring adjustments, have been made. Operating results for the nine months ended September 30, 2013 are not necessarily indicative of the results that may be expected for the year ending December 31, 2013.
	The Company’s financial statements include certain estimates and assumptions which affect the reported amounts of assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Accordingly, actual results may differ from those estimates.

Note_2_Intellectual_Propety

Note 2 Intellectual Propety	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Intellectual Propety	'
	NOTE 2 – INTELLECTUAL PROPERTY
	As of December 31, 2012, the Company had $70,002 of capitalized patents. Through September 30, 2013, the Company did not incur any additional costs for its intellectual property. The Company amortizes patents over the remaining life of the patents, which ranges from 7 to 17 years.
	Intellectual property at September 30, 2013 and December 31, 2012 is as follows:
		September 30,		December 31,
		2013		2012
	Patents	$	70,002	$	70,002
	Accumulated amortization		-59,412		-53,784
	Patents, net	$	10,590	$	16,218

Note_3_Property_and_Equipment

Note 3 Property and Equipment	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Property and Equipment	'
	NOTE 3 – PROPERTY AND EQUIPMENT
	As of September 30, 2013 and December 31, 2012, the Company had a remaining fully depreciated cost basis of $120,745 in laboratory, computer and office equipment. During the nine months ended September 30, 2013, the Company did not sell or otherwise dispose of any of its property and equipment. Property and equipment as of September 30, 2013 and December 31, 2012 are as follows:
		September 30,		December 31,
		2013		2012
	Laboratory equipment	$	40,935	$	40,935
	Computer and office equipment		79,810		79,810
	Accumulated depreciation		-120,745		-120,745
	Property and equipment, net	$	-	$	-

Note_4_Commitments_and_Conting

Note 4 Commitments and Contingencies	9 Months Ended
	Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]	'
Commitments and Contingencies	'
	NOTE 4 – COMMITMENTS AND CONTINGENCIES
	Operating Leases
	The Company rents office and lab space on a month-to-month basis for approximately $1,000 per month.

Note_5_Capital_Stock

Note 5 Capital Stock	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Capital Stock	'
	NOTE 5 – CAPITAL STOCK
	Common Stock
	The Company has authorized 525,000,000 shares of its common stock, $0.001 par value. The Company had issued and outstanding 82,329,481 shares of its common stock at September 30, 2013 and December 31, 2012.
	During the nine month period ended September 30, 2013, the Company did not issue any shares of its common stock for services.
	Common Stock Warrants
	The Company did not issue any common stock purchase warrants during the nine month period ended September 30, 2013. Warrants outstanding are as follows:
		Warrants		Weighted Average	Weighted Average
		Outstanding		Exercise Price	Remaining Life
	Balance, December 31, 2011	919,230	$	0.06	2.62 years
	Warrants issued	-		-	-
	Warrants exercised	-		-	-
	Warrants expired	-		-	-
	Balance, December 31, 2012	919,230		0.06	1.62 years
	Warrants issued	-		-	-
	Warrants exercised	-		-	-
	Warrants expired	-		-	-
	Balance,  September 30, 2013	919,230	$	0.06	0.87 years
	Common Stock Options
	The Company did not grant any stock options for shares of its common stock during the nine months ended September 30, 2013.
	The Company’s stock option activity for the nine month period ended September 30, 2013 is as follows:
		Options		Weighted Average	Weighted Average
		Outstanding		Exercise Price	Remaining Life
	Balance, December 31, 2011	53,945,000	$	0.069	3.63 years
	Options granted	-		-	-
	Options exercised	-		-	-
	Options cancelled and expired	-775,000		1.5	-
	Balance, December 31, 2012	53,170,000		0.049	2.68 years
	Options granted	-		-	-
	Options exercised	-		-	-
	Options cancelled and expired	(250,000)		0.400	-
	Balance, September 30, 2013	52,920,000	$	0.051	1.93 years

Note_6_Basic_and_Diluted_net_L

Note 6 Basic and Diluted net Loss Per Share	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Basic and Diluted net Loss Per Share	'
	NOTE 6 – BASIC AND DILUTED NET LOSS PER SHARE
	The Company computes net income (loss) per common share in accordance with FASB ASC 260, “Earnings Per Share”. Net income (loss) per share is based upon the weighted average number of outstanding common shares and the dilutive effect of common share equivalents, such as options and warrants to purchase common stock, convertible preferred stock and convertible notes, if applicable, that are outstanding each year. The Company uses the treasury stock method of calculating dilutive securities.
	The following table sets forth the calculation of basic and diluted earnings per share for the three month and nine month periods ended September 30, 2013 and 2012. Basic and diluted earnings per share were the same for all periods shown except the nine month period ended September 30, 2012, as including common stock equivalents in the calculation of diluted earnings per share would have been anti-dilutive.
				For the Three Months Ended				For the Nine Months Ended
				September 30,				September 30,
				2013		2012		2013		2012
	Net Income (Loss)		$	-34,007	$	-34,941	$	-118,089	$	59,794
	Common shares Outstanding – Basic			82,329,481		82,329,481		82,329,481		82,329,481
	Earnings Per Share – Basic		$	0	$	0	$	0	$	0
	Effect of Dilutive Securities
		Options		-		-		-		6,635,100
		Convertible Notes		-		-		-		-
	Common Shares Outstanding – Diluted			82,329,481		82,329,481		82,329,481		88,964,581
	Earnings Per share – diluted		$	0	$	0	$	0	$	0

Note_7_Related_Party_Transacti

Note 7 Related Party Transactions	9 Months Ended
	Sep. 30, 2013
Related Party Transactions [Abstract]	'
Related Party Transactions	'
	NOTE 7 – RELATED PARTY TRANSACTIONS
	During the year ended December 31, 2008, two former officers, Gary Reys and Dr. Ronald Berninger, who were also members of the Company’s board of directors, advanced funds in the amount of $26,290 for their defense of certain legal matters. During 2009, Dr. Berninger advanced an additional $6,465 for his defense. Under the Company’s Bylaws, the Company is required to provide for the legal defense of its officers and directors. These advances are included in due to related parties.
	Convertible Promissory Notes
	On December 23, 2009, an officer of the Company loaned $25,000 to the Company in exchange for a convertible promissory note and a warrant to purchase 150,000 shares of common stock. The promissory note bears interest at the annual rate of eight percent and all interest and principal is due on December 22, 2014. The promissory note and accrued interest can be converted into common stock at any time, at the option of the holder, at the exchange rate of $0.035 per share. The fair market value of the warrants of $3,000 was recorded as a discount on the promissory note and is being amortized over five years. This officer has advanced an additional $15,892 to cover operating costs.
	During the nine months ended September 30, 2013, a stockholder of the Company advanced a total of $31,500 under a convertible promissory note to help pay for certain operating and debt service costs. The total outstanding on the promissory note at September 30, 2013 is $340,144 and bears interest at the annual rate of eight percent. All interest and principal is due on January 24, 2015. The promissory note and accrued interest can be converted into common stock at any time, at the option of the holder, at the exchange rate of $0.024 per share.
	During the nine months ended September 30, 2013, a second stockholder advanced a total of $3,725 under a convertible promissory note. The total remaining outstanding on the promissory note at September 30, 2013 was $21,297 and bears interest at the annual rate of eight percent. All interest and principal is due on August 17, 2015. The promissory note and accrued interest can be converted into common stock at any time, at the option of the holder, at the exchange rate of $0.02 per share.
	Stockholder Advances
	During the year ended December 31, 2007 a stockholder of the Company paid various outstanding payables on behalf of the Company. As of September 30, 2013 the Company owed this stockholder $107,949. These advances are unsecured, non-interest bearing with no set terms of repayment and are included on the balance sheet under Due to Related Party.

Note_8_Subsequent_Events

Note 8 Subsequent Events	9 Months Ended
	Sep. 30, 2013
Subsequent Events [Abstract]	'
Subsequent Events	'
	NOTE 8 – SUBSEQUENT EVENTS
	On November 7, 2013, the Company issued new convertible promissory notes to several officers and stockholders to retire previously issued promissory notes, expense advances, and accrued interest. These new convertible promissory notes bear interest at the annual rate of eight percent. The promissory notes and accrued interest can be converted into common stock at any time, at the option of the holder, at the exchange rate of $0.01 per share.

Note_2_Intellectual_Propety_Ta

Note 2 Intellectual Propety (Tables)	9 Months Ended
	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Intellectual Property	'
		September 30,		December 31,
		2013		2012
	Patents	$	70,002	$	70,002
	Accumulated amortization		-59,412		-53,784
	Patents, net	$	10,590	$	16,218

Note_3_Property_and_Equipment_

Note 3 Property and Equipment (Tables)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Schedule of Property and Equipment	'
		September 30,		December 31,
		2013		2012
	Laboratory equipment	$	40,935	$	40,935
	Computer and office equipment		79,810		79,810
	Accumulated depreciation		-120,745		-120,745
	Property and equipment, net	$	-	$	-

Note_5_Capital_Stock_Tables

Note 5 Capital Stock (Tables)	9 Months Ended
	Sep. 30, 2013
Equity [Abstract]	'
Warrants outstanding	'
		Warrants		Weighted Average	Weighted Average
		Outstanding		Exercise Price	Remaining Life
	Balance, December 31, 2011	919,230	$	0.06	2.62 years
	Warrants issued	-		-	-
	Warrants exercised	-		-	-
	Warrants expired	-		-	-
	Balance, December 31, 2012	919,230		0.06	1.62 years
	Warrants issued	-		-	-
	Warrants exercised	-		-	-
	Warrants expired	-		-	-
	Balance,  September 30, 2013	919,230	$	0.06	0.87 years
Stock Option Activity	'
		Options		Weighted Average	Weighted Average
		Outstanding		Exercise Price	Remaining Life
	Balance, December 31, 2011	53,945,000	$	0.069	3.63 years
	Options granted	-		-	-
	Options exercised	-		-	-
	Options cancelled and expired	-775,000		1.5	-
	Balance, December 31, 2012	53,170,000		0.049	2.68 years
	Options granted	-		-	-
	Options exercised	-		-	-
	Options cancelled and expired	(250,000)		0.400	-
	Balance, September 30, 2013	52,920,000	$	0.051	1.93 years

Note_6_Basic_and_Diluted_net_L1

Note 6 Basic and Diluted net Loss Per Share (Tables)	9 Months Ended
	Sep. 30, 2013
Accounting Policies [Abstract]	'
Calculation of Basic and Diluted Earnings Per Share	'
				For the Three Months Ended				For the Nine Months Ended
				September 30,				September 30,
				2013		2012		2013		2012
	Net Income (Loss)		$	-34,007	$	-34,941	$	-118,089	$	59,794
	Common shares Outstanding – Basic			82,329,481		82,329,481		82,329,481		82,329,481
	Earnings Per Share – Basic		$	0	$	0	$	0	$	0
	Effect of Dilutive Securities
		Options		-		-		-		6,635,100
		Convertible Notes		-		-		-		-
	Common Shares Outstanding – Diluted			82,329,481		82,329,481		82,329,481		88,964,581
	Earnings Per share – diluted		$	0	$	0	$	0	$	0

Note_2_Intellectual_Propety_In

Note 2 Intellectual Propety - Intellectual Property (Details) (USD $)	Dec. 31, 2000	Sep. 30, 2000
Property, Plant and Equipment [Abstract]	'	'
Patents	$70,002	$70,002
Accumulated amortization	-53,784	-59,412
Patents, net	$16,218	$10,590

Note_2_Intellectual_Propety_De

Note 2 Intellectual Propety (Details Narrative) (USD $)	Sep. 30, 2013
Property, Plant and Equipment [Abstract]	'
Capitlized Patents	$70,002